Why a Nonprofit Attorney?
Although nonprofit and tax-exempt organizations are often guided by different rules on governance, along with strict tax and accounting rules, nonprofit and tax-exempt organizations usually experience many of the same business issues and needs as for-profit corporations. A competent nonprofit attorney has to be able to handle the routine business matters, as well as the complex tax and governance requirements. We have that experience.
Applications for tax-exempt status (i.e. 501(c)(3)) are complicated. You must convince the IRS that your organization is organized and operated exclusively for tax-exempt purposes. Unfortunately, we have seen numerous individuals prepare their only applications, which have taken 18 months or more to be approved. The nonprofit attorneys of the Business Law Group have successfully prepared and filed dozens of applications for tax-exempt status – all of which have been approved in under 10 weeks.
So, whether you are starting your own nonprofit organization or working for an established organization or foundation, the Business Law Group can assist with all of your organization’s legal needs.
Call the Business Law Group Today!
Fixed Fee Options*
- – $1,500*
- Preparing Application for Tax-exempt (i.e. 501(c)(3)) status – $3,500*
- Drafting Grant or Gift Policies and Application Form – $1,000
Nonprofit vs. Tax Exempt
Many clients are surprised to learn that there is a difference between a nonprofit organization and a tax-exempt entity. Nonprofit status describes a specific type of entity (such as a nonprofit corporation) created under state law. Nonprofit entities are generally subject to governance rules that differ from the rules applicable to for-profit entities.
Tax-exemption is a privilege granted by the federal government, and recognized by the I.R.S. and the state. To qualify, the organization must meet very strict requirements with respect to both its organization and operations. While there are many nonprofit organizations that are not recognized as tax-exempt, most clients seek to create a nonprofit entity that is recognized as tax-exempt.
The Business Law Group is very experienced in creating nonprofit entities and obtaining recognition of tax-exempt status. Let us help you achieve both.
Types of Tax-Exempt Organizations
While most people are familiar with 501(c)(3) charitable organizations, they represent only one category of tax-exempt organizations. In addition to the common charitable organizations the following types of organizations may also receive tax-exempt status:
- 501(c)(2), Corporations that hold property for other tax-exempt organizations
- 501(c)(3), Charitable, religious, and educational organizations
- 501(c)(4), Civic organizations
- 501(c)(5), Labor organizations
- 501(c)(6), Professional, business, and trade associations, and chambers of commerce
- 501(c)(7), Social and recreational clubs
- 501(c)(8), (9), and (10), Employee associations and fraternal organizations
Trust our Nonprofit Law Experience:
We have practical experience in the following matters:
Nonprofit Organization and Governance
- Formation, incorporation, and organization
- Corporate governance
- Composition, size, duties, and responsibilities of the Board of Directors
- Identifying, addressing, and resolving conflicts of interest
- Defining the relationships between the Board of Directors, Officers, and staff
- Limiting liability, managing risk, and obtaining insurance
- Complying with regulatory and annual reporting obligations
- Instituting appropriate corporate and recordkeeping practices
- Dissolving and winding-up nonprofit entities
- Structuring and facilitating mergers and affiliations
Obtaining and Maintaining Tax-Exempt Recognition
- Preparing and filing the appropriate application for tax-exemption
- Complying with the annual reporting requirements
- Qualifying for public charity status and meeting the public support tests
- Satisfying the organizational requirements for tax-exempt status
- Ensuring compliance with the laws on lobbying, advocating, and political activities
- Adopting and documenting appropriate grant-making practices and policies
- Setting appropriate executive compensation
- Complying with the rules on self-dealing and disqualified persons
- Avoiding unrelated business taxable income
General Business (nonprofit organizations still have general business needs):
- Negotiating and drafting contracts and agreements
- Purchasing or leasing real property
- Protecting intellectual property, such as copyrights, trademarks, names and logos
- Drafting and negotiating licensing and royalty agreements
- Hiring and terminating employees
*In addition to the legal fees set forth above, the Client is responsible for all filing fees, court costs, and expenses. Please refer to our Fixed Fees page for additional information and requirements.
Forming a Nonprofit Corporation Includes
- Consultation with a licensed attorney on selecting the right business entity, and the pros and cons of your selection
- Preparing and filing Articles of Incorporation with the Colorado Secretary of State’s Office*
- Drafting basic Bylaws to govern the operations of the nonprofit corporation
- Preparing Minutes of the Incorporator to elect the initial members of the Board of Directors
- Preparing Organizational Minutes of Board of Directors to appoint officers and facilitate the opening of a bank account
- Obtaining a federal Employer Identification Number (EIN) for the new company
- Registering the Nonprofit Corporation with the Colorado Secretary of State’s Office to enable it to solicit charitable contributions
- Providing information and advice on how to register with the Colorado Department of Revenue for a state tax ID and sales tax license
- Providing information and advice on how to register with the Colorado Department of Labor before hiring employees
* Client is responsible for all filing fees with the Secretary of State
In addition to the legal advice and document preparation discussed above, we also include:
- A Minute Book for the Nonprofit Corporation
This is a $ 75 value, that we provide at no additional cost! Also, if you require a company seal, we have them available for an additional charge.